REG - Hummingbird Res. - Coris Refinancing Package

Hummingbird ResourcesAnnouncement

19/08/2024 07:00

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RNS Number : 8732A  Hummingbird Resources PLC  19 August 2024

Hummingbird Resources plc / Ticker: HUM / Index: AIM / Sector: Mining

 

19 August 2024

Hummingbird Resources plc

("Hummingbird", the "Group" or the "Company")

Coris Refinancing Package

Hummingbird (HUM: AIM) is pleased to announce the completion of the strategic
refinancing of a portion of its existing loan facilities with the Company's
principal financing partner Coris Bank International ("Coris Bank").

The Group has secured a refinancing package amounting to approximately US$25
million at an annual interest rate of 12%. This new financing will be utilised
to meet the Company's existing loan obligations due in Q2 2024, providing a
two-year deferment of specific facilities currently held with Coris Bank.

The new facility has a 24-month term with repayments, following a 12-month
pause on capital and interest, scheduled across three tranches beginning in
H2-2025. Importantly, the Company's net debt position will not change because
full quantum of the facility is being used to repay existing obligations owed
to Coris Bank.

This strategic refinancing is a key component of Hummingbird's broader
financial strategy, aimed at reinforcing the Company's balance sheet and
ensuring operational continuity amidst the ongoing adjustments at Kouroussa
and Yanfolila. It positions the Company to better manage its resources while
continuing the ramp-up to achieve commercial production, anticipated later
this quarter.

Related Party Transaction

Coris Bank is controlled by the same principal as the Company's largest
shareholder. The Company entering the refinancing package is therefore
classified as a related party transaction pursuant to the AIM Rules for
Companies. In this regard, the Directors of the Company confirm, having
consulted with the Company's nominated adviser, Strand Hanson Limited, that
they consider that the terms of the refinancing package to be fair and
reasonable insofar as its shareholders are concerned.

Dan Betts, CEO of Hummingbird, commented:

"The refinancing with Coris Bank is a significant step in enhancing
Hummingbird's financial resilience. We fully appreciate the ongoing support
and constructive relationship with Coris, which has been instrumental in
working through recent challenges and in the development of Hummingbird over
the last several years. This move not only reduces near-term balance sheet
constraints but also helps position us to navigate the current operating
environment as we finalise the ramp-up at Kouroussa and target commercial
production later this quarter."

**ENDS**

Notes to Editors:

Hummingbird Resources plc (AIM: HUM) is a leading multi-asset,
multi-jurisdiction gold producing Company, member of the World Gold Council
and founding member of Single Mine Origin (www.singlemineorigin.com
(http://www.singlemineorigin.com) ). The Company currently has two core gold
projects, the operational Yanfolila Gold Mine in Mali, and the Kouroussa Gold
Mine in Guinea, which will more than double current gold production once at
commercial production. Further, the Company has a controlling interest in the
Dugbe Gold Project in Liberia that is being developed by joint venture
partners, Pasofino Gold Limited. The final feasibility results on Dugbe
showcase 2.76Moz in Reserves and strong economics such as a 3.5-year capex
payback period once in production, and a 14-year life of mine at a low AISC
profile. Our vision is to continue to grow our asset base, producing
profitable ounces, while central to all we do being our Environmental, Social
& Governance ("ESG") policies and practices.

 

For further information, please visit hummingbirdresources.co.uk
(https://www.hummingbirdresources.co.uk/)  or contact:

 

 

 Daniel Betts, CEO       Hummingbird Resources plc  Tel: +44 (0) 20 7409 6660

 Thomas Hill, FD

 Edward Montgomery, CD
 James Spinney           Strand Hanson Limited      Tel: +44 (0) 20 7409 3494

 Ritchie Balmer          Nominated Adviser
 James Asensio           Canaccord Genuity Limited  Tel: +44 (0) 20 7523 8000

 Charlie Hammond         Broker
 Bobby Morse             Buchanan                   Tel:  +44 (0) 20 7466 5000

 Oonagh Reidy            Financial PR/IR            Email: HUM@buchanan.uk.com (mailto:HUM@buchanan.uk.com)

 George Pope

 

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